View from the Top April 09 Issue

1. VIEW FROM THE TOP
The latest HR market insight
ISSUE 1
As the world economy experiences the greatest crisis for many decades, Macmillan Davies Hodes'
CEO, John Baker has been meeting with HR leaders to find out the challenges their businesses
and HR face. In the first of a series of articles, he meets HR leaders from Blockbuster,
20th Century Fox and United Business Media.
John started his career in store management and then moved into HR where he has spent
the last 18 years. Initially working with Allied Domecq he moved to WH Smith and then on to
Mothercare where he was the Head of HR. John then moved out of sector to Homeserve
where he was HR Director for Homeserve Property Repairs. He is currently the HR Director
for Blockbuster Entertainment Ltd in the UK on an interim assignment.
John Lambert
Interim HR Director
Blockbuster UK
In 2007, Jennifer moved from EMAP to UBM. She is responsible for developing the Group
wide talent management strategy and works with the Divisional leadership teams to ensure a
positive culture across the business to support profitable growth. Before moving into HR,
Jennifer spent a number of years with the Hay Group, and prior to that held positions in
banking and executive search. Her passion is enabling individuals and organisations to
unlock their potential.
Jennifer Duvalier
Group People & Culture Director
United Business Media
Kirstin has performed a number of HR roles at ITV, Warner Bros, Ziff Davis, Discovery Network
Europe and more recently 20th Century Fox. As the head of International HR at Discovery
Kirstin had responsibility across Europe, Latin America and Asia. Here, Kirstin led a number of
change management projects including an international talent review. In 2008 Kirstin moved to
20th Century Fox where she currently heads up Human Resources for Europe with
responsibility across 14 countries. Kirstin is a Chartered Fellow of the Chartered Institute of
Personnel Development and an accredited coach with the International Coaching Federation.
Kirstin Furber
Executive Director HR, Europe
LONDON - MANCHESTER
20th Century Fox
WWW.MDH.CO.UK

2. VIEW FROM THE TOP – ISSUE 1 mdh.co.uk
How is the global downturn From a more immediate perspective, other challenges
would be in retail price deflation and people shopping less.
affecting your sector? From a market share perspective, we have 660 stores
throughout the UK, as a relatively small unit retailer we’re up
against tough competition from the multiple grocers
John entering our retail space.”
“2008 was a strong year for us. 2009 is going to be Kirstin
naturally challenging from a retail perspective but there are
also lots of opportunities. The needs of our customers are
“ Our cinema distribution arm is doing very well at the moment.
Even if people have a big HD TV at home, the cinema is an
changing and we are not only well placed to meet them, our
inexpensive night out and there’s still nothing like seeing a
diversification aims to broaden our appeal. ” movie on the big screen! TV distribution remains strong as ever
Kirstin – the negotiations naturally become more challenging in times
like this, however, crucially we own the ‘content’ and it is
“Across the globe, cinema attendance is generally on the content which is driving all aspects of media at the moment.
up. This is true in most of the countries where Fox operates.
It’s understandable, especially with so many depressing The area of our business facing the biggest challenge is
headlines in the newspapers, people are looking for Home Entertainment, mainly due to the widely publicised
escapism and some light relief. Fox’s film Slumdog issues the high street retailers are facing. Our Home
Millionaire is a good example of this as it has an uplifting Entertainment division is looking at new distribution
channels however it remains one of the most fast-changing
storyline about hope and dreams coming true.
and adaptable industries – so change is nothing new to
Piracy remains a challenge for our industry particularly in them! Consumer demand for Blu-ray is increasing rapidly
certain countries, however the advent of digital cinema will and with the high number of people owning HD TVs and
make it much more difficult to copy films which will result in Blu-ray players, we expect to see demand staying high.
sharp deterioration in quality in piracy. This is a major positive Especially as often people will choose a night in with a DVD
development for the Entertainment sector. and a bottle of wine over going to a restaurant. ”
Overall, the economic situation puts more pressure on our Jennifer
sector to carefully review its investment strategy. The biggest
rewards still come from taking the biggest risks however, as is
“ Autonomy and agility are the characteristics of our
business, and creating an environment that drives profitable
the case for everyone right now, this is a nerve-wracking time to
growth in a positive culture is key to our success.
be taking risks.”
From a macro context the recession means that capabilities
Jennifer and succession planning are a priority for us in 2009.
Identifying what capabilities we need in the business to ensure
“ B2B media services are quite different to B2C so you could
we can change at speed have never been more important.
suggest that the downturn has had a different effect on us
How leadership roles differ given that capability shift and how
than our consumer media peers. One of the significant
we gain clarity of the people agenda are key issues.
challenges in our sector is convergence of technology.
Future proofing the business, is also about getting a view on
Our business model broadened away from advertising
who fits within that agenda, and ensuring that we add value
based models to include data and events based revenue
from the centre.”
over the past 4 years. We are less exposed than those who
haven’t. There have been some quite profound survival
challenges within the media sector for a number of years What are the key
and as a result our industry is used to change. ”
challenges for HR?
What are the key challenges John
for your business? “Our challenge at Blockbuster is largely around capability.
Delivering a consistent level of customer service across
multiple retail outlets is important to the customer
John experience. As a decentralized business each shop needs to
be equally good at training, recruiting and retailing.
“There are a number of challenges. Our brand and model
as a film and game rental business is very strong. The long Developing the commercial acumen of each store manager
term challenge is around how customers access digital to ensure customers have a great experience whilst
content. We’re strengthening our offer as a retailer in the maximising our commercial opportunity is essential.
product areas of film, games and digital lifestyle. We have Choosing the right talent to take the business forward and
been focussing on this during the last 2-3 years and have providing the right set of tools to equip them with the
built a strong position in this area. changes our business is going through is fundamental.

3. VIEW FROM THE TOP – ISSUE 1 mdh.co.uk
As for my profession I feel that there’s still a disappointing creative about how they conduct their business. We must
mediocracy within HR functions. In the early days HR was provide the platforms and mechanisms to do things and think
seen as very transactional and whilst acceptance as an about things in a different way. It’s down to HR to help position
equal business partner is increasing, I don’t believe we the ‘permission’ culture to go ahead and try new things. The
have reached a point where we are accepted as equal problem is we’re not given much time to test ideas, so it’s
business partners in the majority of businesses. I feel important to drive a culture that enables people to ‘just do it’
there is still much to prove in terms of expertise and in the knowledge that risk-taking is permissible. Smart
credibility. Other chartered bodies seem to provide more companies will focus on adapting and re-focusing their best
rigour in delivering consistently capable professionals. people. Organisations need to fully embrace their approach to
managing people and ensure they recognise great work.
On a more positive note. There are some great individuals
and teams in businesses who have shown real strength in 20th Century Fox has always been remarkably good at
delivering added value to their businesses. I would just like adapting to change. The company has survived many
to see more of it more of the time. ” tough times and through being lean and resilient has good
muscle for dealing with the present situation. My hope is
Kirstin that we will continue to develop our people, focus our
objectives and grow our business. Certainly, our consumers
“In our business it’s essential for HR to be a flexible enabler have an expectation and would want us to strive for
of change. It’s always been important for HR professionals nothing less!”
to have commercial acumen as well as technical expertise,
however in this climate the need for pragmatic, action- Jennifer
oriented advice is stronger than ever. It’s not just about
recognising the changes, it’s about identifying how the “This is a chapter that has brought, and will continue to bring,
business can successfully work through them and, where tough decisions to a head. When times are good organisations
possible, even benefit from them. tend not to tackle these issues, especially where people are
concerned. The recession can be the chill wind for structural
Many companies have announced job losses which is difficult transformation that might not have happened otherwise.
for everyone concerned – including HR professionals. It’s
HR in general has been an introspective function and
easy for people to get drawn into the doom and gloom, even
needs to be tougher. It needs to stop talking about roles
when it’s not affecting them directly. I subscribe to the
and get under the skin of the business. Recession is an
opposite point of view which is to embrace these times as an
opportunity to be more creative – look at interventions that
opportunity to do something different. It is by being innovative
can shape and deliver for the business. You have to
and thinking laterally that we can see new ways of working,
understand the drivers for the business and understand
new business opportunities and new ways to invigorate our
and really use the language of other business partners.
people to succeed in these turbulent times.
Take finance – they don’t focus on the numbers alone,
For any business, in order to continue to excel we need to they focus on the overall commerciality of the business.
differentiate ourselves through creativity. It falls to HR to work How many HR professionals do this? How many have even
with Executives and Managers to help galvanise talent to be managed a P&L? ”
Next issue – May 09
Find out what’s challenging the HR Leaders in other sectors. Three more HR Leaders share their
views on the current economy and the challenges that their businesses and HR face.
If you would like to participate in ‘A View from the Top’ and share your views with the HR
community, please contact John Baker on the number below.
Get in touch
John Baker Chris Archer Angela Franks Darren Hayman
CEO Macmillan Davies Hodes MDH Interim MDH Futurexec
020 7551 4732 020 7551 4710 020 7551 4668 020 7551 4761
jbaker@mdh.co.uk carcher@mdh.co.uk afranks@mdh.co.uk dhayman@mdh.co.uk